blur Group: Full-Year Results

blur Group has announced its full-year results for the full-year ended 31st December 2014. The results show a further increase in both revenues and gross profits as the early-stage technology company continues to focus on its enterprise customers, which provide a higher quality income stream and more reliable revenues. The results also show an increased number of repeat customers, in addition to an increased number of service providers and new projects submitted, further demonstrating the growing demand for the blur platform. We have updated our forecasts and continue to expect that the current cash position provides the funding for the business to allow it to execute its strategy. With the shares offering investors exposure to the high growth services-commerce market, we continue to classify the shares as a growth stock. 

Full-Year Results

For the 12-months ended 31st December 2014, revenue increased by 35.5% to $4.72m. New projects submitted increased by 57% to 3,681, of which enterprise customers submitted projects worth a total value of $28.5m, a yo-y increase of 90%. Projects that came from existing customers accounted for 35.7% of total projects by year-end, increasing to 50% post year end. Cost of sales increased by 9.3% to $3.07m, reflecting a change in accounting policy, resulting in a gross profit increase of 146.3% to $1.65m. LBITDA increased by 63% to $10.34m as administrative costs increased by 75% to $12.62m, reflecting continuing investment in technology and people, in addition to the effects of bad debt and currency headwinds. Cash outflow from operating activities was $9.65m, and investment and financing activities increased to $19.0m. Cash balance at 30th June 2015 was $12.2m. Post period-end, blur appointed a new Chief Financial Officer, Tim Allen, who will have a clear focus on cash management and cost control. 


For FY15, we are forecasting revenue of $5.00m, gross profit of $1.56m and EBITDA of ($8.90m). For FY16, we are forecasting revenue of $7.98m, gross profit of $2.79m and EBITDA of ($4.49m). We continue to expect a higher focus on controlling costs, and estimate EBITDA breakeven in FY18.  


blur’s addressable market is significant and we estimate it reached $265bn in 2013 and will grow to $641bn in 2018. Assuming blur’s share of this market reaches only 1%, we estimate the company could be worth $73.25m (£47.09m).